FX.co ★ EUR/USD: plan for the European session on February 18. Volatility will return. Markets are waiting for new reports on the state of the German economy and the eurozone. Bears aim for 1.0800

To open long positions on EURUSD you need:

Yesterday's low trading volume due to President's Day in the United States and the lack of important fundamental statistics did not cause the euro to fall further, however, it is still very early to say that the lows of the month have large buyers. The emphasis is shifted in the morning to the data on the index of moods in the business environment of Germany and the eurozone, on which the future direction of EUR/USD will depend. However, it is unlikely that the situation with euro purchases will somehow improve, so all attention again needs to be focused at 1.0830. One should be careful, and a return to 1.0830 with a false breakout forming there after the data will return the bulls to the market and then it would be possible to reach the resistance of 1.0860, a breakthrough of which will lead the pair to a high of 1.0886, where I recommend taking profit. In case the euro further falls to long positions, you can look at the rebound from a low of 1.0804, or even lower, in the support area of 1.0773.

To open short positions on EURUSD you need:

Yesterday, sellers did not put everything off the bat and began to act even before the pair approached the resistance of 1.0860, which only confirms the absence of those who are eager to buy euros in the current conditions. Bears also tried today to break below the support of 1.0830, but this did not lead to a major sale. Today, the main task of sellers in the first half of the day will be to break through the 1.0830 area, which may occur after weak reports on moods in the business environment of Germany and the eurozone, which will lead to selling the euro to the lows of 1.0804 and 1.0773, where I recommend taking profits. In the scenario of a small upward correction in EUR/USD, an unsuccessful attempt to consolidate above the resistance of 1.0860 will be another signal to open short positions. You can sell the euro immediately for a rebound from a high of 1.0886.

Signals of indicators:

Moving averages

Trading is carried out in the region of 30 and 50 moving average, which indicates the likely preservation of a downward correction.

Bollinger bands

Volatility has decreased, which does not provide signals for entering the market.

Description of indicators

• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
• MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
• Bollinger Bands (Bollinger Bands). Period 20